Audit 18130

FY End
2022-07-31
Total Expended
$3.57M
Findings
2
Programs
2
Year: 2022 Accepted: 2023-03-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
12556 2022-001 Significant Deficiency - N
588998 2022-001 Significant Deficiency - N

Contacts

Name Title Type
HFJPGLBJT7C7 Tawana Shaw Auditee
5137021359 Robert P. Ford Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior year. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Union Baptist Church Pioneer Housing, Inc. has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Union Baptist Church Pioneer Housing, Inc. (Union Baptist) under programs of the federal government for the year ended July 31, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of Union Baptist, it is not intended to and does not present the financial position, changes in net assets or cash flows of Union Baptist.
Title: Federal Awards Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior year. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Union Baptist Church Pioneer Housing, Inc. has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. Union Baptist Church Pioneer Housing, Inc. provided no federal awards to subrecipients.
Title: HUD Insured Mortgage Balance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereby certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior year. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Union Baptist Church Pioneer Housing, Inc. has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. Section 223(f) HUD-insured mortgage balance as of July 31, 2022 is $2,135,881.

Finding Details

FINDING NO. 2022-001 Questioned Costs: $2,985 Information on Universe And Population Size: Total amount of replacement reserve deposits Sample Size Information: N/A Criteria: In accordance with Section 2(a) of the Regulatory Agreement, the Organization is required to fund the replacement reserve monthly in an amount determined by HUD. Condition: The Organization and its lender did not fund the replacement reserve in the full amount as required by HUD. Cause: HUD issued increase notices via HUD-9250 forms effective May 1, 2021 on March 11, 2021 and effective May 1, 2022 on December 31, 2022. Adjustments were not made by the Organization and lender to adjust the monthly remittance to account for the increases. Effect: The replacement reserve account is underfunded by $2,985 at July 31, 2022. Recommendation: The regulatory agreement was terminated upon closing of the refinance in December 2022. Going forward management should coordinate with the lender to ensure a process is in place to adjust the monthly remittance annually as deposit increase notices are received.
FINDING NO. 2022-001 Questioned Costs: $2,985 Information on Universe And Population Size: Total amount of replacement reserve deposits Sample Size Information: N/A Criteria: In accordance with Section 2(a) of the Regulatory Agreement, the Organization is required to fund the replacement reserve monthly in an amount determined by HUD. Condition: The Organization and its lender did not fund the replacement reserve in the full amount as required by HUD. Cause: HUD issued increase notices via HUD-9250 forms effective May 1, 2021 on March 11, 2021 and effective May 1, 2022 on December 31, 2022. Adjustments were not made by the Organization and lender to adjust the monthly remittance to account for the increases. Effect: The replacement reserve account is underfunded by $2,985 at July 31, 2022. Recommendation: The regulatory agreement was terminated upon closing of the refinance in December 2022. Going forward management should coordinate with the lender to ensure a process is in place to adjust the monthly remittance annually as deposit increase notices are received.